Marriott Sells Sheraton Phoenix Downtown to the Blackstone Group. Here’s What We know Article originally posted on AZ Central on January 15, 2020 In what could be described as a multimillion-dollar flip, Marriott has sold Arizona’s largest hotel, the 1,003-room Sheraton Phoenix Downtown, to the Blackstone Group a little more than 18 months after purchasing it from the city of Phoenix. The sale price is $268 million, according to a document Marriott has filed with the Securities and Exchange Commission. Phoenix built the hotel in 2008 for $350 million and took a significant loss when it sold it to Marriott in June 2018 for $255 million. In recent months the hotel, at 340 N. 3rd St., has undergone a massive renovation, updating everything from guest rooms to restaurants. Marriott envisions a space that will bring visitors and the community together. Renovations are scheduled to be completed in the first half of 2020. In the public filing, Marriott said it intends for the property to serve as a “showcase hotel for the new Sheraton brand vision,” and it will continue to operate the hotel in a long-term management agreement with Blackstone. Publicly traded Marriott disclosed the Sheraton sale in its recent SEC filing. Maricopa County records don’t show that the deal has closed yet. Nadeem Meghji, Head of Real Estate Americas at Blackstone, said in an emailed statement that the investment group was excited to continue its investments in Arizona with the acquisition of the Sheraton Phoenix Downtown “an iconic property that will continue the growth of the downtown entertainment district.” “We are big believers in Arizona and have invested significant capital into our portfolio companies and real estate properties across the state. We are proud of the jobs those investments have created and look forward to continuing to invest in the state and its people in the years to come,” said Meghji. We’ve also reached out to Marriott for comment. We will update this story when they get back to us. Blackstone’s investment in Phoenix The Blackstone Group is the largest private equity real estate firm in the world and is no stranger to the Phoenix market. During the past decade, Blackstone has invested nearly $1 billion locally, buying rental homes, apartments and mobile home parks. It owns almost $3.8 billion in real estate assets in Arizona and employs nearly 1,500 people at its hotels. In April 2018, Blackstone purchased the iconic Arizona Biltmore for $403 million. The Biltmore operates as part of Hilton’s Waldorf Astoria collection. In September 2019, Blackstone sold the JW Marriott Desert Ridge Resort and Spa in Phoenix for $602 million. It was the priciest resort sale in Arizona history.